“Peter” in this case is the Facebook user logged in to his account. The woman in the “Hot Singles” ad is his own wife. According to Facebook, these ads “respect all privacy rules.” Personally, I think it’s just a nice obvious bit of proof that Facebook is truly sleezy under all the pretty blue makeup. Luckily there is a quick and easy opt-out for this nonsense, steps follow.
You’re automatically opted-in by Facebook

That’s right, you have to actually go into your settings to turn this off. Your face may have already been used to advertise any number of things to the people on your friends-list. Here’s how to do it:
Highlight Settings at the top of the page, click Privacy Settings
Click News Feed and Wall
Hit the tab for Facebook Ads
There should be a drop-down menu here, select “No One”